Debt Consolidation Verses Debt Stacking
Debt Consolidation:
Debt consolidation is always an option when striving to reduce monthly debt
payments, by combining debts at different rates. I am not
personally an advocate of debt consolidation although it sounds like it does the same thing as debt stacking.
How? Well my combining all debts and having one easier and often time lower payment, you can focus on paying it
down faster saving more money. So, what is the problem with it? Attitude, debt consolidation is a band aid if
not used properly. Debt consolidation does not solve the reason why the debt was allowed to accumulate in the
first place.
Debt Stacking:
Debt Stacking on the other hand can still save you a lot of money that was going to
interest and cut the time in half with out paying any more then you are right now. Debt stacking forces you
to evaluate your debts and which ones are costing you the most. Using a system like Debt Stacking has an
educational effect that is masked when one only consolidates their debts. Debt consolidation can sometimes
keep you in debt longer then debt stacking and cost you more in the long run.
So, should I or shouldn’t I consolidate my debt?
It has been my experience that you should only consider debt consolidation if you can
not afford to continue making your monthly payments the way you are now. I challenge you to use the debt
stacking principles to compare your options. The Free Rapid Debt Reducer Software gives you all the tools you
need to compare debt payoff options. In the end the sensible solution is to create a debt payoff plan that
you can both afford and stick to. Don’t commit to much extra money to your plan if it is going make you hate
it or go over budget in other areas. Our goal here is to get out of debt and not need credit cards or
debt consolidation ever again. Debt Stacking is only a tool.
Use the debt form to keep track of all your debts and know how much is going to
interest each month. Get your family involved and put your goals in plain sight so that when you say no to a
purchase everyone knows why. Each time a debt is paid off go for a treat. The bigger the debt and longer it
takes the bigger the treat, but do it with cash.
Debt consolidation verses Debt stacking, you decide which is better
for you.
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